Natural Gas Price Forecast – Natural Gas Gaps Higher And Then Continues UpwardNatural gas markets get a bit of a boost during the trading session on Tuesday as colder temperatures are most certainly coming to the United States. Beyond that, we have bounced from a major uptrend line.
Natural gas markets have gapped higher to kick off the trading session on Tuesday, and then continued to climb from there. By breaking above the top of the candlestick from the Monday session, it has turned Monday into and “inverted hammer”, which of course is a very bullish sign as it shows the sellers getting blown out. At this point, it’s likely that the market could go to the 50 day EMA, closer to the $2.55 level. Looking at this chart, it appears that the gap has held, and therefore it’s likely that we could reach towards those moving averages.
NATGAS Video 04.12.19
While I would not take a huge position on, we could go to those moving averages or perhaps even as high as the $2.75 level. At this point in time, it’s very likely that we will continue to see a lot of upward pressure due to the time of year, and of course the massive pop that we normally get this time of year due to snowstorms in the United States. We are starting to see more winter weather in places like Boston, and that of course drives up demand. I have no interest in shorting this market, but I do recognize that a breakdown below the $2.25 level would be extraordinarily negative, perhaps sending this market down to the $2.00 level. That is a large, round, psychologically significant figure, so breaking below that would be rather telling. This time a year though, it’s easier to buy natural gas as it’s only a matter of time before colder temperatures are forecasted, and then the market rallies.
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